Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

Economic growth is typically measured by an increase in absolute and per capita real GNP (Gross National Product), signifying a rise in the total output of goods and services. However, economic development is a broader concept that encompasses qualitative improvements in living standards, equitable distribution of wealth, and enhanced social welfare. If an economy experiences an increase in GNP but simultaneously sees a rise in poverty and unemployment, it indicates that the economic growth is not inclusive. The benefits of growth are not reaching all sections of society, and the fundamental problems of deprivation and lack of opportunities are worsening for a significant portion of the population. In such a scenario, despite aggregate growth, the society is not achieving a higher level of economic development, as the welfare and well-being of its people are deteriorating.